Consumer inflation expectations in Australia dropped to 4.5% in November 2025 from 4.8% in the previous month, marking the lowest reading since August, as cost pressures eased from their 2022 peak despite a temporary uptick in September. The latest result followed the central bank's decision earlier in the month to keep its cash rate unchanged at 3.6% after three cuts this year. The moderation in expectations came even as recent data showed headline inflation jumping to 3.2% in Q3, the highest since Q2 2024, while the trimmed-mean CPI - the RBA’s preferred core gauge - rose to 2.7%, also the highest since Q4 2024. Meanwhile, monthly CPI climbed 3.5% year-on-year in September, marking the fastest pace in 14 months. The overall trend suggested that households expect slower price growth ahead despite lingering price pressures, while policymakers maintained a cautious stance as inflation remains above target.